Unlike traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. (SIPC). Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors.
Pros Explained
- More than 220 coins supported: Kraken supports popular currencies including Bitcoin, Ethereum, Cardano, Solana, and Dogecoin.
- Simple user interface: Kraken is relatively easy to use even if you don’t have crypto experience.
- High liquidity exchange: Kraken is an active exchange where it’s easy to buy and sell at market rates.
Cons Explained
- Higher fees when not using Kraken Pro: The main Kraken platform charges higher transaction fees than Kraken Pro.
- Some users report losses due to hacks: Some users report a history of costly hacks with little to no support from Kraken.
Introduction
Kraken is a major cryptocurrency exchange that makes it easy to buy, sell, and exchange a long list of dozens of different cryptocurrencies including market leaders Bitcoin and Ethereum. In addition to buying and selling crypto at spot rates, Kraken offers users margin accounts and futures trading, riskier products useful for advanced trading strategies.
The easiest place for new crypto investors to start in the Kraken ecosystem is the main Kraken platform. More experienced traders, even outside of cryptocurrency, may prefer the lower-cost active trading platform Kraken Pro.
Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.
Company Overview
Kraken is a crypto exchange founded in 2011 in San Francisco with offices around the world. It supports customers in over 190 countries. Kraken supports individual and institutional investors with competitively priced cryptocurrency trading.
Beginners will do best with the main Kraken platform, while advanced and expert crypto enthusiasts may prefer Kraken Pro and the advanced margin and futures features. The combination of platforms and services makes it likely that Kraken can handle your cryptocurrency needs.
Cryptocurrencies Available on Kraken
Kraken supports over 220 cryptocurrencies, including popular ones such as:
- Bitcoin (BTC)
- Ethereum (ETH)
- Cardano (ADA)
- Dogecoin (DOGE)
- Litecoin (LTC)
- Polkadot (DOT)
- Polygon (MATIC)
- Stellar Lumens (XLM)
- Solana (SOL)
- Sushi (SUSHI)
- Uniswap (UNI)
Kraken also supports a handful of stablecoins including Tether USD, USD Coin, and Dai. Eight fiat currencies are supported including USD, EUR, and GBP. Note that not all currencies are available in every country.
Trading Experience
Kraken offers two trading platforms to users, Kraken and Kraken Pro. Kraken Pro offers lower pricing and is available to anyone with a Kraken account.
Depending on your cryptocurrency and active market trading experience, you may prefer Kraken or Kraken Pro. In either case, there’s a platform suitable for anyone from beginners to experts.
Kraken
Beginners are best off starting with the central Kraken platform. With a verified account, you can quickly buy cryptocurrency from a linked bank account, and it’s just as easy to sell or convert between currencies in your account.
Once your account is created and you’ve logged in, it only takes a few seconds to enter an order using a straightforward form.
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Using this system, you’re able to buy crypto directly using your bank account balance. You don’t have to fund your account first.
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To keep your account safe, be sure to enable two-factor authentication (2FA), which prevents anyone from logging into your account without your device and a randomly generated code in hand.
Kraken Pro
Kraken Pro is an active trading platform that works through your web browser or smartphone. While the interface may be intimidating to crypto and trading newbies, it could be worth learning. It includes more detailed asset information including active charts and a view into open orders.
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Anyone with an active Kraken account can use Kraken Pro. Possibly more important than the advanced interface is lower fees. If you make the same trade with Kraken Pro instead of Kraken, you’ll pay less than using the main interface.
Fees
Pricing and fees vary depending on the platform you’re using and the trade you’re entering. In either case, prices may be subject to spread fees as well, especially on the main platform. Here’s a glance at the most important fees to be aware of:
Kraken Pricing
For instant purchases, Kraken will charge a percentage fee of the transaction and likely a spread as well. The fee for your transaction will be displayed before you confirm it. Additional fees based upon your funding method may also be charged such as credit card fees.
Kraken Pro Pricing
Kraken Pro offers much lower pricing than the main Kraken platform. Pricing is based on your total trading volume over the last 30 days. Most trades are subject to either a 0.26% taker fee or 0.16% maker fee.
| 30-Day Volume (USD) | Maker | Taker |
|---|---|---|
| $0–$50,000 | 0.16% | 0.26% |
| $50,001–$100,000 | 0.14% | 0.24% |
| $100,001–$250,000 | 0.12% | 0.22% |
| $250,001–$500,000 | 0.10% | 0.20% |
| $500,001–$1,000,000 | 0.08% | 0.18% |
| $1,000,001–$2,500,000 | 0.06% | 0.16% |
| $2,500,001–$5,000,000 | 0.04% | 0.14% |
| $5,000,001–$10,000,000 | 0.02% | 0.12% |
| $10,000,000+ | 0.00% | 0.10% |
Maker orders are trades that are not instantly matched against existing orders, which add liquidity to the platform. Taker fees are charged to orders that match against an outstanding order from another user on the market and require a slightly higher fee.
Security
Your Kraken account should be safe from cybercriminals looking to drain your balances if you follow good online security practices. Once an account is funded, it’s extremely wise to add two-factor authentication. You can create different two-factor codes for sign-in, account withdrawals, and trades. There’s also a feature to lock your account from any changes if you’re concerned that your account was breached.
While most users have a positive experience, some users report hacked accounts where the owner lost everything with no options to recover lost assets. As cryptocurrency blockchain transactions can’t be reversed, crypto accounts are a common target for fraud. Beware of these risks when using Kraken or any other exchange.
Cryptocurrency transactions can’t be reversed. Make sure to keep your account information secure and double-check addresses before sending funds to another cryptocurrency wallet.
Opening a Kraken Account
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Signing up with Kraken is similar to signing up for a stock brokerage or another cryptocurrency exchange. If you have all of your information handy, it takes only a few minutes to get your account up and running.
When signing up, you’ll need to provide contact information including your name, address, phone number, and Social Security number. This information is part of what’s known as know your customer (KYC) requirements in the financial industry.
To verify your account and access all trading features, you’ll need to provide additional information, including uploading a copy of a government photo ID and a picture of you holding that ID. Without adding this information, you’re stuck with limited account functionality.
Customer Service
Kraken support is available 24 hours a day via live chat, phone, and email. We had a minor issue changing an account setting (mostly due to user error) and sent in a support ticket. Kraken staff responded and resolved the problem in about 20 minutes.
While we had a great experience with customer service, not all users report the same outcomes. Some unhappy customers report trouble with funds due to phishing attacks and trouble getting Kraken to release held funds.
Customer Satisfaction
Kraken earns just 2.7 out of 5 stars on Trustpilot, indicating many users have experienced significant problems. The most common complaints focused on long waits for customer support responses and holding funds beyond the initial security period.
These customer service complaints are concerning, but it’s important to take both positive and negative reviews into account when choosing a cryptocurrency exchange.
Account Management
Account management is mostly self-service and handled through the Kraken website and mobile apps. If you have a laptop or desktop computer, you may find the large screen makes managing your account easier.
In the Kraken dashboard, you can update settings, manage your approval level, add 2FA, manage API keys, and lock down your account.
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How Kraken Compares to Other Cryptocurrency Companies
Kraken offers features beyond the typical industry competitor and slightly lower pricing than its most prominent rivals. Consider these differences between Kraken and Coinbase, another popular crypto exchange:
Kraken vs. Coinbase
Coinbase and Kraken both operate their centralized exchanges where users buy and sell from each other. Kraken supports over 220 cryptocurrencies for spot trading. Coinbase supports more than 250 currencies.
Only Coinbase features the ability to earn through staking your cryptocurrency at varying interest rates, Coinbase supports spot currency markets only, while Kraken also supports cryptocurrency futures.
Kraken and Coinbase don't display fees on their publicly accessible websites for simple crypto buying. Both companies state the fee will be displayed before you confirm the transaction. Coinbase has maker-taker exchange fees that are more expensive than Kraken Pro's maker-taker fees.
Read our full Coinbase review.
Final Verdict
Kraken’s pricing and features make it a good choice for beginner to expert cryptocurrency traders and investors looking for a new cryptocurrency exchange. Its low fees on Kraken Pro and futures markets are all a draw. However, Kraken Pro is more complicated to navigate.
Overall, Kraken is an excellent choice for cryptocurrency trading and investing. Make sure you understand all costs and risks involved and take steps to secure your account with two-factor authentication. If you do, you should have a positive experience buying and selling cryptocurrency through Kraken.
Methodology
Investopedia is dedicated to helping those interested in cryptocurrency investing make informed and safe decisions. We are committed to providing our readers with unbiased reviews of the top cryptocurrency exchanges for investors of all levels.
Exchanges were reviewed on points including security, fees, number of cryptocurrencies available, and more. We also considered if the exchange is regulated by a proper agency or entirely decentralized. Our full cryptocurrency exchange methodology, including the review process and weighted data points, is available for review.
Investopedia is dedicated to helping those interested in cryptocurrency investing make informed and safe decisions. We are committed to providing our readers with unbiased reviews of the top cryptocurrency exchanges for investors of all levels.
Exchanges were reviewed on points including security, fees, number of cryptocurrencies available, and more. We also considered if the exchange is regulated by a proper agency or entirely decentralized. Our full cryptocurrency exchange methodology, including the review process and weighted data points, is available for review.
Cryptocurrency exchanges differ significantly from traditional brokerage firms, especially concerning investor protection. Unlike traditional entities covered by the Securities Investor Protection Corporation (SIPC), cryptocurrency exchanges like Kraken lack this protection. Should the exchange fail or suffer a breach, investors may face potential losses, especially if assets are co-mingled on custodial platforms. This issue raises concerns regarding user terms and the security of funds, emphasizing the necessity for cautious consideration and understanding of the risks involved in the crypto market.
Kraken, established in 2011, is a prominent exchange supporting over 220 cryptocurrencies across various markets. It facilitates both individual and institutional trading, offering diverse options ranging from spot trading to margin accounts and futures trading. The platform's accessibility caters to users of varying expertise levels, with the main Kraken platform suitable for beginners and Kraken Pro designed for more seasoned traders seeking lower fees and advanced features.
In terms of coin support, Kraken covers a wide array of cryptocurrencies, including well-known ones like Bitcoin, Ethereum, Cardano, and Solana. Additionally, it extends its services to stablecoins and multiple fiat currencies, albeit with limitations based on geographic regions.
The trading experience on Kraken varies between its main platform and Kraken Pro. While the former provides a straightforward interface for buying and selling, the latter offers a more intricate setup, granting users access to comprehensive asset information and reduced transaction fees based on trading volumes.
Fees associated with Kraken's services differ across its platforms. The main Kraken platform tends to charge higher transaction fees, whereas Kraken Pro implements a tiered fee structure based on trading volumes, providing potential cost savings for frequent traders.
Security measures, including two-factor authentication, are pivotal for safeguarding accounts, given the susceptibility of crypto accounts to hacking attempts. However, despite these precautions, some users have reported compromised accounts and subsequent loss of assets, emphasizing the inherent risks associated with cryptocurrency transactions.
Opening an account with Kraken involves standard KYC procedures, requiring personal information and verification steps for access to full trading functionalities. Customer support, available via live chat, phone, and email, has received mixed reviews, with instances of delayed responses and fund-holding issues reported by some users.
Comparing Kraken to competitors like Coinbase showcases distinctions in coin support, fee structures, and additional features like staking. While Kraken boasts a broader range of supported cryptocurrencies, Coinbase offers unique services like staking for earning rewards on holdings.
In conclusion, Kraken emerges as a viable option for cryptocurrency trading, catering to a spectrum of users with its diverse offerings. However, potential investors should thoroughly comprehend the risks and costs involved in crypto transactions and implement robust security measures to mitigate vulnerabilities.
